Chino Municipal Code Ch. 2.60 Conflict of Interest Code

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* Prior Ordinance History: Ord. 76-13.

A. The Political Reform Act, Government Code sections 81000 et seq., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, 2 Cal. Adm. Code section 18730, which contains the terms of a standard conflict of interest code, which can be incorporated by reference, and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of 2 Cal. Adm. Code section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are incorporated by reference in the ordinance codified in this chapter and, along with the appendix set forth at the end of this chapter in which officials and employees are designated and disclosure categories are set forth, constitute the conflict of interest code of the City of Chino.

B. Pursuant to section 4(B) of the standard code, designated employees shall file statements of economic interests with the agency which shall make and retain a copy and forward the originals to the code reviewing body which shall be the filing officer.

C. Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the appendix referred to at the end of this chapter constitute the adoption and promulgation of a conflict of interest code within the meaning of Government Code section 87300 or the amendment of a conflict of interest code within the meaning of Government Code section 87307 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of Article 2 of Chapter 7 of the Political Reform Act, Government Code sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code section 87100, and to other state or local laws pertaining to conflicts of interest.

D. The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as set forth in this chapter.

(Ord. 83-7, 1983.)

The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Adm. Code sections 18100 et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code.

(Ord. 83-7 § 1, 1983.)

The persons holding positions listed in the appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests.

The city council may adopt a resolution amending the designated positions and disclosure categories of the appendix as it deems necessary upon recommendation of the city manager.

(Ord. 96-12 § 1, 1996: Ord. 83-7 § 2, 1983.)

This code does not establish any disclosure obligation for those designated employees who are also specified in Government Code section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interests pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government Code sections 87200, et seq. Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the appendix specify which kinds of financial interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the appendix. It has been determined that the financial interests set forth in a designated employee's disclosure categories are the kinds of financial interests which he or she foreseeably can affect materially through the conduct of his or her office.

(Ord. 83-7 § 3, 1983.)

The code reviewing body shall instruct all designated employees required to file statements of economic interest pursuant to this conflict of interest code to file in accordance with one of the following procedures.

A. All designated employees shall file statements of economic interests with the agency. Upon receipt of the statements of economic interests of the head of the agency and members of boards or commissions not under a department of state or local government, the agency shall make and retain a copy of each and forward the originals of these statements to the code reviewing body, which shall be the filing officer with respect to these statements. Such statements shall be forwarded to the code reviewing body within five days after the filing deadline or five days after receipt in the case of statements filed late.

B. All designated employees shall file statements of economic interests with the agency, which shall make and retain a copy and forward the originals to the code reviewing body, which shall be the filing officer.

(Ord. 83-7 § 4, 1983.)

A. Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within thirty days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within thirty days after the effective date of amendment.

B. Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within thirty days after assuming the designated positions or, if subject to State Senate confirmation, thirty days after being nominated or appointed.

C. Annual Statements. All designated employees shall file statements no later than April 1st.

D. Leaving Office Statements. All persons who leave designated positions shall file statements within thirty days after leaving office.

(Ord. 83-7 § 5, 1983.)

A. Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code.

B. Contents of Assuming Office Statements. Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination.

C. Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year; provided, however, that the period covered by an employee's first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later.

D. Contents of Leaving Office Statements. Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office.

(Ord. 83-7 § 6, 1983.)

Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information:

A. Investments and Real Property Disclosure. When an investment or an interest in real property is required to be reported, the statement shall contain the following:

1. A statement of the nature of the investment or interest;

2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged;

3. The address or other precise location of the real property;

4. A statement whether the fair market value of the investment or interest in real property exceeds one thousand dollars, exceeds ten thousand dollars, or exceeds one hundred thousand dollars.

B. Personal Income Disclosure. When personal income is required to be reported, the statement shall contain:

1. The name and address of each source of income aggregating two hundred fifty dollars or more in value or fifty dollars or more in value if the income was a gift, and a general description of the business activity, if any, of each source;

2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owned to each source, was one thousand dollars or less, greater than one thousand dollars or greater than ten thousand dollars;

3. A description of the consideration, if any, for which the income was received;

4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received;

5. In the case of a loan, the annual interest rate and the security, if any, given for the loan.

C. Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported, the statement shall contain:

1. The name, address, and a general description of the business activity of the business entity;

2. The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars.

D. Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity.

E. Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal.

(Ord. 83-7 § 7, 1983.)

A. No designated employee shall make, participate in making, or use his or her official positions to influence the making of any governmental decision which will foresee- ably have a material financial effect, distinguishable from its effect on the public generally, on:

1. Any business entity in which the designated employee has a direct or indirect investment worth more than one thousand dollars;

2. Any real property in which the designated employee has a direct or indirect interest worth more than one thousand dollars;

3. Any source of income, other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating two hundred fifty dollars or more in value provided to, received by or promised to the designated employee within twelve months prior to the time when the decision is made; or

4. Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management.

B. No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section.

(Ord. 83-7 § 8, 1983.)

When a designated employee determines that he or she should not make a governmental decision because he or she has a financial interest. In the case of a voting body, this determination and disclosure shall be made part of the agency's official record; in the case of a designated employee who is the head of an agency, this determination and disclosure shall be made in writing to his or her appointing authority; and in the case of other designated employees, this determination and disclosure shall be made in writing to the designated employee's supervisor.

(Ord. 83-7 § 9, 1983.)

Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code section 83114 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion.

(Ord. 83-7 § 10, 1983.)

This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code sections 81000 — 91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code section 87100 has occurred may be set aside as void pursuant to Government Code section 91003.

(Ord. 83-7 § 11, 1983.)